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New mechanisms for monitoring external borrowings by large enterprises in Uzbekistan
Starting from 1 January 2025, any Uzbek resident (or a group), public or private, deemed as systemically important and with an outstanding debt that exceeds USD 50 million, potentially falls under the new CoM Regulation No. 670 "[O]n further improvement of the system of attracting bank loans and foreign debts by large enterprises of systemic importance for the economy of Uzbekistan" ("Regulation 670"). Whether an entity is deemed systemically important to the national economy is decided by the by the Coordination Commission on Risk Management for Systemically Important Enterprises (the "Coordination Commission") on an annual basis; If an entity falls under Regulation 670, it must get the Commission’s
Kinstellar welcomes Otabek Suleymanov as Partner, further strengthening its capabilities in Uzbekistan
Kinstellar is pleased to announce that Otabek Suleymanov, a highly reputable and experienced lawyer, has joined its Tashkent office. His addition as the fourth Partner in the local team underscores Kinstellar’s continued commitment to strengthening its presence and expanding its capabilities in Uzbekistan and the wider Central Asia region. Otabek has over two decades of experience in cross-border Banking and Finance, M&A, as well as a variety of projects matters in the key sectors in Uzbekistan’s growing economy. He is widely recognised for his deep sector knowledge and his ability to structure and execute complex transactions: his clients describe him as a “strong and well-experienced lawyer” with “impeccable
Kinstellar advises on Dual-Currency Eurobond issuance by Ipoteka Bank OTP Group, in Uzbekistan
Kinstellar has advised J.P. Morgan, Citi, Société Générale, OTP Bank as Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers and Bank of China and Mashreq as Co-Bookrunners; and BNY Mellon Corporate Trustee Services Limited as Trustee, on the successful Eurobond issuance by Ipoteka Bank OTP Group. This is the first-ever public Eurobond issuance by a private bank in Uzbekistan setting a new milestone for the development of country’s banking and financial sector. The Reg S-only dual-currency offering comprised USD 300 million of 5-year senior unsecured notes and the UZS 1.2 trillion of 3-year senior unsecured notes. This landmark transaction marks a major milestone for Ipoteka Bank OTP Group
Kinstellar advises ADM Global on strategic joint venture with Sojitz Corporation in Uzbekistan’s automotive industry
Kinstellar has recently advised ADM Global on its landmark strategic partnership with Japan’s Sojitz Corporation in Uzbekistan’s automotive industry. Under the transaction, Sojitz acquired a stake in ADM’s automotive distribution business and committed USD 100 million in additional investment. The partnership will enhance ADM Global’s operational capacity and contribute to the modernization of Uzbekistan’s automotive sector, bringing in advanced expertise, new technologies and expanded international cooperation. Kinstellar provided full legal support for the establishment of the joint venture – including preparing and negotiating the share purchase agreement, shareholders agreement, charter and founding
Kinstellar advises Halyk Bank on strategic cross-border fintech partnership with Click
Kinstellar has recently advised JSC Halyk Bank on its USD 237 million strategic partnership with Uzbekistan’s leading fintech platform, Click – a landmark transaction reflecting the growing convergence of banking and digital services in Central Asia. Under the deal, Halyk acquires a 49% stake in Click for USD 176.4 million, while Click’s shareholders take a 49% stake in Halyk’s Uzbek subsidiary, Tenge Bank, for USD 60.76 million. Representing the largest private sector transaction in Uzbekistan to date, the deal features an innovative and balanced structure that enables both parties to remain independent while forming a powerful alliance in Uzbekistan’s rapidly evolving digital finance landscape. The partnership
Kinstellar strengthens Tashkent office with the appointment of Dilshad Khabibullaev, as Partner
Kinstellar is delighted to announce that Dilshad Khabibullaev has joined our Tashkent office as a Partner. With over two decades of experience in infrastructure, investment, and public-private partnership (PPP) projects—particularly in the transportation sector—Dilshad brings a wealth of knowledge and leadership to our team in Uzbekistan and the broader Central Asia region. Throughout his notable career, Dilshad has played a key role in pioneering transport infrastructure projects in Uzbekistan, including the country’s first airport PPP, first toll road PPP, and first traffic video surveillance investment project. His expertise spans both the automotive and aviation industries, where he has consistently delivered
Navigating the legal landscape: The implementation status of MiCA
As the cryptocurrency market continues to captivate investors worldwide, understanding the regulatory landscape becomes more crucial than ever. In this respect the Markets in Crypto Assets Regulation (the MiCA) is a ground-breaking initiative by the European Union (the EU) aimed at establishing a robust framework for digital asset markets. With MiCA application having taken effect on 30 December 2024, EU member states are now in the process of aligning their national legislation with the new rules and addressing the practical challenges of implementation.Click on the image below or use the following link to read our overview in English. For more
TMT Legal Update
Our TMT Legal Update provides insights from our law experts and aims to keep you regularly up to date with sector news, trends and legislation in the Central and Eastern Europe and Central Asia regions. This issue covers key updates from our jurisdictions from the past few months. REGIONAL Implementation status of certain EU regulations Technology 01. New development regarding NIS 2 Directive implementation in various Kinstellar jurisdictions The EU's NIS2 Directive is a cybersecurity act aimed at improving overall cybersecurity in the EU. Member States must implement it by 17 October 2024. Below we provide
Kinstellar advises China Southern Power Grid International on the acquisition of a non-controlling stake in ACWA Power’s two wind farm projects in Uzbekistan
Kinstellar is delighted to announce that we have successfully advised China Southern Power Grid International on its acquisition of a 35% stake in ACWA Power Bash Wind Project Holding Company Limited and ACWA Power Uzbekistan Wind Project Holding Company holding 100% in Bash and Dzhankeldy Uzbek project companies, respectively. The projects represent a combined 1 GW capacity and over USD 1.3 billion of investments. This transaction marks the first acquisition of large-scale renewable energy projects in Uzbekistan. Each of Bash and Dzhankeldy wind farm plants is developed based on a ‘Build, Own, Operate, Transfer’ model and consists of 79 wind turbines (158 turbines in total) that will generate 3,235 gigawatt-hours
Kinstellar reinforces its capabilities in Uzbekistan with the appointment of Kamilla Khamraeva as Counsel
Kinstellar is delighted to announce that Kamilla Khamraeva has joined the firm’s Tashkent office as Counsel. Kamilla focuses on Banking & Finance and the Energy and Infrastructure sectors. Kamilla is an experienced lawyer with a strong track record implementing some of the major and most sophisticated projects in Uzbekistan in recent years. She has also been involved in regional initiatives overseeing mandates in Turkmenistan, collaborating with local firms/lawyers on the ground. During her legal career she has advised the IFC, ADB, EBRD, Intesa Sanpaolo, Unicredit, Credit Suisse, MUFG, SACE and others in various transactions. Kamilla often works closely with lenders on structuring bespoke transactions to
Uzbekistan introduces a new legal framework to govern competition within commodity and financial markets
On 3 July 2023, the President of Uzbekistan signed the Law No. ЗРУ- 850 “[o]n competition” (the “New Law”), which comes into force on 4 October 2023, replacing the law on competition No. ЗРУ-319 dated 6 January 2012 (the “Old Law”). The New Law (i) defines new criteria for identifying a dominant market position, (ii) introduces the concept of superior bargaining power, (iii) sets out antimonopoly compliance requirements for certain business entities, (iv) clarifies the requirements for obtaining preliminary consent for certain transactions, and (v) imposes financial sanctions for violations of the New Law. Antimonopoly Compliance The New Law introduces the concept of antimonopoly compliance
Kinstellar assists OTP Bank with completing its first acquisition in Central Asia
As previously announced, in December 2022 Kinstellar advised OTP Bank, Hungary’s largest commercial bank and one of the largest independent financial service providers in Central and Eastern Europe, on the successful acquisition of Uzbekistan’s fifth-largest bank, Ipoteka Bank. Kinstellar has continued advising OTP Bank to reach another significant milestone in the transaction, as OTP Bank has completed the first closing of the transaction, i.e. the acquisition of a 73.71% stake in Ipoteka Bank from the state. With the transaction, OTP has become the first foreign lender to participate in the privatisation of Uzbekistan's banking sector. In the next step of the transaction, the remaining shares of Ipoteka Bank